MCB Real Estate is keen to acquire Whitestone REIT and has increased its offer to $1.45 billion, including assumed debt.
Baltimore-based MCB offered to buy the Houston-based real estate investment trust for $15 a share, or about $751 million in cash, the Business Journal said. MCB will also assume approximately $677 million of the REIT’s debt, bringing the total acquisition price to nearly $1.5 billion. MCB claimed in an announcement Wednesday that it had received a letter of confidence from Wells Fargo & Co. (WFC) to secure the necessary financing for the acquisition.
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Whitestone’s retail-focused portfolio includes 57 properties across Arizona and Texas, with a combined leasable area of 5.1 million square feet at the end of June, according to its second-quarter earnings report. reach
The new offer exceeds the $14 per share bid MCB made for Whitestone earlier this summer, which the REIT ultimately rejected. MCB noted that Whitestone’s stock had “underperformed” in the months since its initial offering, but following MCB’s announcement, the REIT’s stock price rose from $13.47 at market close on Tuesday to $14.34 as of Wednesday afternoon. The dollar rose significantly.
P. David Bramble, co-founder and managing partner of MCB, said, “As Whitestone’s third largest shareholder and largest actively managed shareholder, our interests are vested in the company’s We are committed to pursuing transactions that maximize value and are aligned with our owners.” In a statement. “Although our efforts to engage in constructive discussions have so far been rebuffed, we are prepared to complete our due diligence and enter into a final agreement quickly, and we are committed to seeing this through.” I am doing my best to see it through.”
A representative for Whitestone did not respond to a request for comment, and a spokesperson for MCB did not respond to a request for further information about the proposal.
MCB’s efforts to acquire Whitestone began earlier this year when Erez Asset Management Chairman Bruce Schanzer sought to join the REIT’s board of directors along with business partner Kathy Clark. At the time, Whitestone’s board characterized Schanzer’s move as a “proxy contest” and a takeover, but it was ultimately rejected at Whitestone’s annual shareholder meeting.
MCB also claimed on Wednesday that its offer was a 61.8% premium to Whitestone’s stock price, prior to last fall’s “rumored” takeover bid by Fortress Investment Group, which was reported at the time by Bloomberg. did.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
